Abstract
While prior research has approached decision-making under uncertainty from either real options or social network perspective, a joint consideration of both theories sheds additional insights. We first propose that uncertainty in a strategic domain has a negative effect on a VC firm’s portfolio depth in that domain but a positive effect on the firm’s portfolio diversity across strategic domains. We further hypothesize that a VC firm’s within-industry centrality accentuates the negative effect of uncertainty on portfolio depth, and reinforces the positive effect of uncertainty on portfolio diversity. However, a VC firm’s within-industry brokerage attenuates the negative effect of uncertainty on portfolio depth, and weakens the positive effect of uncertainty on portfolio diversity. Analyses of VC investments in the U.S. during 1976-2015 largely support our thesis.
| Original language | English |
|---|---|
| Title of host publication | Strategies in the Era of De-Globalization - Conference Program Book |
| Publication status | Published - Sept 2018 |
| Event | 38th Annual Conference of the Strategic Management Society: Strategies in the Era of De-Globalization - Paris, France Duration: 22 Sept 2018 → 25 Sept 2018 https://www.strategicmanagement.net/paris/overview/overview |
Conference
| Conference | 38th Annual Conference of the Strategic Management Society |
|---|---|
| Abbreviated title | SMS 38th Annual Conference |
| Place | France |
| City | Paris |
| Period | 22/09/18 → 25/09/18 |
| Internet address |
Bibliographical note
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